Under contract for a flip in a flood zone. What would you do?

[Benjamin Haberman]

Hello BP,

I am currently under contract with a flip in a flood zone, which will require flood insurance. We are buying from a bank so they do not have any information on the property. With that being said, I will need a flood elevation certificate to get a quote on flood insurance. The target buyer for this flip is a first time home buyer and the flood insurance can range anywhere from $500 to $5000 a year. So it's a gamble. If it turns out the flood insurance is big $ it will eliminate a large pool of buyers :(. Should I be concerned with this? Anyone have any experience with this? We purchased the property for $55, Renovations will be $55 and sale price will be about $180-$190. The flood insurance requirement is a downer though...

Any help would be much appreciated,

Ben

Best,

Ben Haberman